Chrysler and GM Pension Tsunami
July 2nd, 2009
Defined Benefit Pension Plan for 255,000 is underfunded by $9.2 billion. It appears that because of the “intricacies” of pension funding rules and the deal that the Obama Administration worked out, that Chrysler’s next payment is deferred for two years. Chrysler was technically bankrupt until the Obama Administration re organized but it remains financially shaky. Will it be able to make the one billion payment due under the intricate pension funding rules due in two years?
General Motors, now known as Government Motors and the pensions of the U.S. automakers [Ford, Chrysler and GM] and their suppliers are underfunded by a combined $60 billion. General Motors (GM) alone has 670,000 pension participants.

